neoclassical economics

E52109

economic theory school of economic thought

Neoclassical economics is a dominant school of economic thought that explains prices, output, and income distribution primarily through marginal analysis, individual rational choice, and market equilibrium.

Aliases (2)

Marshallian economics ×1
Principles of Economics ×1

Statements (50)

Predicate	Object
instanceOf	economic theory → school of economic thought →
associatedWith	Alfred Marshall → Carl Menger → John Hicks → Léon Walras → Paul Samuelson → Vilfredo Pareto → William Stanley Jevons →
assumes	diminishing marginal returns → diminishing marginal utility → profit maximization by firms → rational agents → utility maximization by consumers →
contrastedWith	Keynesian economics → Marxian economics → institutional economics →
coreTool	calculus → comparative statics → constrained optimization →
criticizedFor	limited treatment of power and inequality → neglect of institutions → strong rationality assumptions →
developedFrom	classical economics →
emergedInPeriod	late 19th century →
emphasizes	individual rational choice → marginal analysis → market equilibrium →
explains	distribution of income → factor pricing → price formation → resource allocation →
focusesOn	income distribution → output → prices →
influenced	mainstream macroeconomics → modern microeconomics →
normativeImplication	efficiency of competitive markets →
usesConcept	consumer surplus → general equilibrium → imperfect competition → marginal cost → marginal revenue → marginal utility → partial equilibrium → perfect competition → producer surplus → supply and demand → welfare economics →
viewsMarketAs	tending toward equilibrium →

Referenced by (8)

Subject (surface form when different)	Predicate
Human Well-Being and the Natural Environment → Industrial Fluctuations ("Marshallian economics") → Walter Eucken →	influencedBy
David Ricardo → classical economics →	influenced
Alfred Marshall → Joseph Schumpeter →	movement
Alfred Marshall ("Principles of Economics") →	notableWork